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HAP report: Economic Impact of Penn Highlands
June 12, 2014
DuBOIS- Penn Highlands Healthcare annually contributes about $904 million to the region’s economy, according to a report recently released by The Hospital & Healthsystem Association of Pennsylvania (HAP). Penn Highlands also supports 3,800 jobs in the region.

As a non-profit organization, Penn Highlands Healthcare also provided more than $39 million in charitable benefits to the region.

Penn Highlands Healthcare is comprised of four regional hospitals – Penn Highlands Brookville, Penn Highlands Clearfield, Penn Highlands DuBois and Penn Highlands Elk.

The HAP report shows both the human and financial impact of Pennsylvania’s hospitals on communities across the state, as well as on the state as a whole.

 “Penn Highlands Healthcare plays a major role in the economic and social well-being of our community,” said Raymond A. Graeca, chief executive officer, Penn Highlands Healthcare. “We are a safety net for our most vulnerable citizens, and are working to broaden our reach through public health efforts.”

Locally, Penn Highlands DuBois contributes more than $379 million to the economy through employment, purchased services and supplies from businesses and capital spending.

Penn Highlands DuBois pays nearly $112 million in salaries. The ripple effect of those salaries through employment created indirectly by the hospital is an additional $52 million, for a total benefit of $164 million in salaries and wages.

As for community benefit and investment, Penn Highlands DuBois’ contribution amounts to $16 million annually. This figure includes providing medical care to those unable to pay; shortfalls in Medicaid and Medicare reimbursements to the hospital; providing community services such as free health screenings; and donations made by the hospital to charitable organizations and community programs.

 “Penn Highlands DuBois not only serves as a beacon of healing for residents of this region, but it also is vital to the region’s economic stability. The hospital and the people it employs support local businesses and serve as a crucial economic stimulus. The importance of community hospitals cannot be underestimated,” stated John Sutika, president of Penn Highlands DuBois.

Statewide, all hospitals – nonprofit and investor-owned combined – contributed nearly $104 billion to local and state economies, an increase of almost $6 billion between 2011 and 2012. Pennsylvania’s non-profit hospitals provided more than $5.8 billion in charitable community benefits.

 “Pennsylvania’s hospitals and health systems are going through significant transitions as they redesign care delivery to focus on improving patient quality and satisfaction, improve community health and reduce per capita cost,” said HAP President and CEO Andy Carter.    “Even during these transitions, they remain solid economic assets and major employers, because they provide critical services that are anchored in personal relationships. They will always be cornerstones of their communities.”

The nearly $104 billion in economic impact includes the support of nearly 592,000 jobs –about one in ten jobs in Pennsylvania.

The $5.8 billion in charitable community benefits included more than $1 billion in unpaid patient bills; nearly $2.3 billion to subsidize care for Medicare and Medicaid beneficiaries; more than $428 million in financial assistance and charity care; more than $262 million in subsidized health services; nearly $135 million in community health improvement services and programs in response to the health needs of their communities; more than $674 million in hospital-based education programs to train highly skilled health care professionals; more than $935 million in research to cure illnesses and advance medical treatments and services; and more than nearly $14 million in contributions and community-building activities.

HAP is a statewide membership services organization that advocates for nearly 240 Pennsylvania acute and specialty care, primary care, subacute care, long-term care, home health, and hospice providers, as well as the patients and communities they serve. Additional information about HAP is available online at www.haponline.org.

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